Joint Venture And Shareholders Agreement Template for Philippines

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Key Requirements PROMPT example:

Joint Venture And Shareholders Agreement

"I need a Joint Venture and Shareholders Agreement under Philippine law for a technology joint venture between our local software development company and a Singapore-based AI firm, with specific provisions for intellectual property sharing and technology transfer, planned to commence operations in March 2025."

Document background
The Joint Venture and Shareholders Agreement is a crucial document used when two or more parties wish to establish and operate a joint business venture in the Philippines while clearly defining their rights and obligations as shareholders. This document is particularly important in the Philippine context due to specific foreign ownership restrictions and local corporate governance requirements. The agreement typically covers company formation, capital contribution, management structure, profit sharing, transfer restrictions, and exit mechanisms, while ensuring compliance with Philippine laws including the Revised Corporation Code, Foreign Investments Act, and relevant industry regulations. It serves as both the founding document for the joint venture and the ongoing governance framework for shareholder relationships.
Suggested Sections

1. Parties: Identification of all parties entering into the agreement, including full legal names and addresses

2. Background: Context of the joint venture, including business objectives and parties' intentions

3. Definitions: Detailed definitions of terms used throughout the agreement

4. Formation of the Joint Venture Company: Details of company formation, including name, registered office, and business objectives

5. Capital Structure: Share capital, classes of shares, and initial shareholding percentages

6. Subscription and Payment: Terms of share subscription, payment schedule, and capital contribution requirements

7. Corporate Governance: Board composition, appointment rights, voting requirements, and management structure

8. Shareholder Rights and Obligations: Detailed rights and obligations of shareholders, including voting rights and pre-emptive rights

9. Reserved Matters: Decisions requiring special majority or unanimous approval

10. Transfer of Shares: Restrictions on share transfers, right of first refusal, tag-along and drag-along rights

11. Dividend Policy: Framework for dividend declarations and distributions

12. Deadlock Resolution: Procedures for resolving management or shareholder deadlocks

13. Termination: Circumstances and procedures for terminating the agreement

14. Exit Provisions: Mechanisms for shareholders to exit the joint venture

15. Confidentiality: Protection of confidential information and trade secrets

16. Non-Competition: Restrictions on competitive activities

17. Governing Law and Dispute Resolution: Applicable law and methods for resolving disputes

18. General Provisions: Standard boilerplate clauses including notices, amendments, and severability

Optional Sections

1. Intellectual Property Rights: Required when the JV involves significant IP contributions or development

2. Technology Transfer: Necessary when one party is providing technical knowledge or proprietary technology

3. Environmental Compliance: Important for joint ventures in industries with environmental impact

4. Employment Matters: Required when the JV involves transfer or sharing of employees

5. Foreign Investment Provisions: Necessary when foreign investors are involved, addressing Filipino ownership requirements

6. Marketing and Branding: Important when the JV involves use of existing brands or creation of new ones

7. Supply and Distribution Arrangements: Required when the JV includes supply chain or distribution agreements

8. Research and Development: Necessary for joint ventures focusing on product or technology development

Suggested Schedules

1. Schedule 1 - Initial Shareholding Structure: Detailed breakdown of initial share capital and shareholding percentages

2. Schedule 2 - Business Plan: Initial business plan including financial projections and operational strategy

3. Schedule 3 - Reserved Matters List: Comprehensive list of matters requiring special approval

4. Schedule 4 - Board Charter: Detailed procedures for board operations and governance

5. Schedule 5 - Deed of Adherence: Template for new shareholders joining the agreement

6. Schedule 6 - Initial Officers and Directors: List of initial appointments to key positions

7. Schedule 7 - Intellectual Property Rights: Detailed list of IP rights contributed by each party

8. Schedule 8 - Form of Shareholders Resolution: Template for shareholder resolutions

9. Appendix A - Articles of Incorporation: Copy of the company's Articles of Incorporation

10. Appendix B - By-Laws: Copy of the company's By-Laws

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Relevant legal definitions
Clauses
Relevant Industries

Manufacturing

Technology

Real Estate

Renewable Energy

Agriculture

Financial Services

Telecommunications

Healthcare

Retail

Infrastructure

Mining

Tourism

Food and Beverage

E-commerce

Education

Relevant Teams

Legal

Corporate Secretarial

Finance

Compliance

Business Development

Corporate Strategy

Risk Management

Investment

Board of Directors

Executive Management

Mergers and Acquisitions

International Business

Corporate Governance

Relevant Roles

Chief Executive Officer

Chief Legal Officer

Chief Financial Officer

Corporate Secretary

Legal Counsel

Investment Director

Business Development Manager

Compliance Officer

Corporate Governance Officer

Board Director

Managing Director

Joint Venture Manager

Shareholder Relations Manager

Strategy Director

Risk Management Officer

Industries
Revised Corporation Code of the Philippines (Republic Act No. 11232): Primary legislation governing the establishment, operation, and regulation of corporations in the Philippines. Covers corporate formation, shareholder rights, board responsibilities, and corporate governance.
Foreign Investments Act of 1991 (Republic Act No. 7042, as amended): Regulates foreign investment participation in Philippine businesses, including restrictions on foreign ownership in certain industries and requirements for foreign investors.
Securities Regulation Code (Republic Act No. 8799): Governs securities transactions, shareholder protection, and disclosure requirements for corporations, particularly relevant for shareholder agreements and share transfers.
Philippine Competition Act (Republic Act No. 10667): Ensures fair market competition and regulates anti-competitive practices, which may affect joint venture arrangements and market operations.
National Internal Revenue Code: Governs taxation aspects of corporate transactions, including tax obligations for joint ventures, dividend distributions, and share transfers.
Anti-Money Laundering Act (Republic Act No. 9160, as amended): Requires due diligence in business transactions and partner verification, particularly relevant for joint venture partner selection and capital contributions.
Intellectual Property Code of the Philippines (Republic Act No. 8293): Protects intellectual property rights, crucial for joint ventures involving technology transfer or IP sharing arrangements.
Labor Code of the Philippines: Governs employment relationships and labor standards that joint ventures must comply with in their operations.
Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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